NEGATIVE REAL YIELD DRIVING STOCKS HIGHER
By Nigam Arora & Dr. Natasha Arora
To gain an edge, this is what you need to know today.
Negative Yield
Please click here for inflation-adjusted Treasury real yield.
Note the following:
- The chart shows that the real yield on the 10-year Treasury has become more negative in recent days.
- The real yield is negative due to the stampede into Treasury Inflation Protected Securities (TIPS). We are receiving a large number of questions from investors regarding investing in TIPS. In due course, we are planning a podcast on TIPS. This will be available to Arora Ambassador Club members.
- Paradoxically, the negative real yield is driving the stock market higher.
November 15, 2021